I have learned this is not a good thing to do. In fact when I went to change the syslog path back to default, I got an error which forced me to have to reboot the host in order to change it.
So my new question is this: What settings do I have to change to assure that no logfiles get written to the USB flash drive? I had thought i only had to change the 'ScratchConfig.ConfiguredScratchLocation' setting, although when doing this, it still appears to log some stuff locally at /var/log/.